Method and system for closed loop collect on delivery (C.O.D.) payments

ABSTRACT

A trusted closed loop payment system and method that reduces the liability imposed upon carriers for delivery of C.O.D. shipments is provided. A third party payment system is authorized by the buyer to make payments to a shipper (and, if applicable, a freight forwarder) on behalf of the buyer upon receipt of goods by the buyer. Since the payment for the shipment is being made by the third party payment system, and guaranteed by the third party payment system, the liability imposed on the carrier to ensure the payment is proper and will be honored is removed. In addition, the present invention provides several advantages for shippers and buyers as well, including receipt of payment by a shipper in a much shorter time frame, and multiple payment options for buyers for account reconciliation with the third party payment system for the C.O.D. shipments.

CROSS-REFERENCE TO RELATED APPLICATIONS

[0001] This application claims priority from U.S. ProvisionalApplication Ser. No. 60/379,372, filed on May 10, 2002, thespecification of which is hereby incorporated by reference.

FIELD OF THE INVENTION

[0002] The invention disclosed herein relates generally to the field ofpayment systems, and more particularly to a system and method for closedloop collect on delivery (C.O.D.) payments.

BACKGROUND OF THE INVENTION

[0003] A buyer of goods purchased from a shipper currently has severaloptions to pay for the goods, including for example, by cash, creditcard, check, etc. In addition, the timing of the payment must also beagreed upon between the buyer and shipper, such as, for example, at thepoint of sale, within a predetermined billing cycle, etc. Included inthese options is payment for the goods when they are received, commonlyreferred to as collect on delivery (or cash on delivery) and abbreviatedC.O.D. Specifically, in a C.O.D. transaction, the buyer and shipperagree that the buyer will pay for the purchased goods, in full,immediately upon receipt by the buyer.

[0004]FIG. 1 illustrates in block diagram form an example of aconventional basic C.O.D. transaction process between aconsignor/seller/shipper 12 (hereinafter referred to as shipper 12) anda consignee/buyer 14 (hereinafter referred to as buyer 14). While theexample illustrated in FIG. 1 illustrates an international shipment, itshould be understood that C.O.D. shipments may be both international ornational. The buyer 14 places an order for goods with the shipper 12 instep (1), and in step (2) the terms of the sale are agreed to by thebuyer 14. Under the C.O.D. payment option, the buyer 14 agrees to makepayment simultaneously with the receipt of the shipment. The destinationinland carrier 16 will be instructed to collect payment from the buyer14 at the time of delivery. The payment instrument and currency aretypically designated under the C.O.D. terms. Payment includes thecharges for the goods, i.e., the purchase price, which can also includethe transportation charges for shipment of the goods. Alternatively, thetransportation charges can be billed separately from the purchase price,in which case the buyer 14 will be presented with more than one invoice.

[0005] Typically, the party paying for the transportation chargesselects a freight forwarder 18 to orchestrate the shipping process. Inthis example, the transportation charges will be paid by the buyer 14and billed separately from the purchase price of the goods. Accordingly,once the buyer 14 has informed the shipper 12 of the desired freightforwarder 18, in step (3) the shipper 12 contacts the freight forwarder18 to arrange for the shipment of the goods to the buyer 14. In step (4)the freight forwarder 18 coordinates shipment and payment for shipmentwith various participants, typically one or more carriers. Theparticipants include, for example, an origination inland carrier 20, along haul carrier 22, such as, for example, an air cargo carrier forinternational shipments, and the destination inland carrier 16. Itshould be understood that there may be other participants as well, suchas, for example, a consolidator, terminal handlers and ade-consolidator. Thus, the freight forwarder 18 will schedule with theorigination inland carrier 20 the physical pick-up of the shipment andassociated documentation (bill of lading, commercial invoice, etc.) fromthe shipper 12, delivery to long haul carrier 22, and subsequentdelivery to the destination inland carrier 16. Of course, the shipmentcould also be palletized for consolidation (by a consolidator) withother shipments before being delivered to the origination inland carrier20 or long haul carrier 22. In step (5), which of course may beconcurrent with step (4), the shipment moves through the transportationchain system.

[0006] Upon arrival of the shipment and customs clearance in thedestination country (for international shipments), the shipment is madeavailable for pick-up by the destination inland carrier 16 for deliveryto the buyer 14. Of course, if the shipment was palletized, it mustfirst be broken down into the individual shipments for final delivery(by a de-consolidator). In step (6), the destination inland carrier 16physically delivers the shipment to the buyer 14, along with theshipper's 12 C.O.D. purchase invoice, and, since transportation expensesare being paid by the buyer 14 in this example and billed separatelyfrom the purchase price, the C.O.D. transportation invoice(s).Typically, the buyer 14 will present separate payment instruments to thedestination carrier for payment of each of the invoices in step (7). Ifthe payment instruments are checks, the check(s) to cover transportationexpenses is/are made payable to the freight forwarder 18, while thecheck to cover the purchase invoice is made payable to the shipper 12.The destination inland carrier 16 must perform the necessary duediligence to ensure that the payment instruments as presented conform tothe C.O.D. terms.

[0007] In step (8), the destination carrier 16 provides the freightforwarder 18 with the check(s) associated with the C.O.D. transportationinvoice(s), and the freight forwarder 18 will settle with theappropriate parties as applicable, i.e., the origination inland carrier20, long haul carrier 22 and/or destination inland carrier 16. It shouldbe noted, of course, that the freight forwarder 18, origination inlandcarrier 20, long haul carrier 22 and destination inland carrier 16 maynot be separate entities, but instead all of them or any combinationcould be the same entity. Additionally, it should be noted that whilethe example illustrated in FIG. 1 utilizes a long haul carrier 22,shipments can also be made utilizing only a single inland carrier. Inmany situations, especially for domestic shipments, the originationinland carrier 20, freight forwarder 18 and destination inland carrier16 will be the same entity. In step (9), which may be concurrent with oreven before step (8), the destination inland carrier 16 provides theshipper 12 with the check(s) associated with the C.O.D. purchaseinvoice(s), thus completing the C.O.D. transaction.

[0008] There are problems, however, with the conventional system forpaying for goods C.O.D. For example, there is a large amount ofliability imposed on the carriers under the current system, andespecially on the destination inland carrier 16. When the destinationinland carrier 16 accepts the responsibility of delivering the shipmentto the buyer 14 under the terms of C.O.D. (step (6) of FIG. 1), thedestination inland carrier 16 is also responsible for collection ofpayment from the buyer 14 to the shipper 12, and may also be responsiblefor collection of payment from the buyer 14 for transportation chargesif the transportation charges are being paid by the buyer 14. Thus, asnoted above, it is the responsibility of the destination inland carrier16 to ensure that payment by the buyer 14 is proper. For example, thedestination inland carrier 16 must ensure that any checks presented forpayment conform to the C.O.D. terms and will be honored when presentedto the financial institution upon which they are drawn. If the paymenttendered by the buyer 14 is not acceptable or not honored for anyreason, the destination inland carrier 16 is liable to the shipper 12for the cost of the goods. In addition, during the time each of thecarriers has physical possession of the goods, they are liable for anydamage to the goods, thereby further increasing the amount of liabilityimposed upon the carriers. Thus, many carriers are hesitant to provideservice for C.O.D. shipments because of the liability imposed upon them,thereby limiting commerce between shippers and buyers.

[0009] Thus, there exists a need for a trusted payment system and methodthat reduces the liability imposed upon carriers for delivery of C.O.D.shipments by providing assurance of payment upon receipt of the goods.

SUMMARY OF THE INVENTION

[0010] The present invention alleviates the problems associated with theprior art and provides a trusted payment system and method that reducesthe liability imposed upon carriers for delivery of C.O.D. shipments.

[0011] In accordance with the present invention, a third party paymentsystem is authorized by the buyer to make payments to a shipper (and, ifapplicable, a freight forwarder) on behalf of the buyer upon receipt ofgoods by the buyer. The buyer establishes an account with the thirdparty payment system and authorizes the third party payment system tomake payments on their behalf. The account could be set up, for example,as an interest bearing or non-interest bearing deposit account for thebuyer from which funds may be used to pay shippers and carriers for thepurchase of goods delivered C.O.D. Additionally, the third party paymentsystem could establish a credit line for the buyer. When the buyer isgoing to receive goods C.O.D., the buyer and/or seller can indicate thatpayment will occur through the third party payment system. The buyerthen makes a request for payment to the third party payment system. Therequest may include information related to the purchase of the goods,such as, for example, a manifest of the specific items withdescriptions, or the request may be as simple as an internal ordernumber generated by the buyer or shipper. The buyer authorizes the thirdparty payment system to provide the shipper with payment for the goodson the buyer's behalf upon receipt of the goods by the buyer. The thirdparty payment system processes the information related to the shipmentof the goods and generates a payment authorization number (PAN), whichis provided to the buyer. The PAN may be cryptographically generatedover a sufficiently wide range of integer values such that it would bedifficult for an unauthorized party to guess the number assigned to ashipment with the attributes previously specified.

[0012] A carrier (or plurality of carriers in succession) will then movethe goods from the shipper to the buyer. When a carrier arrives at thebuyer's location to deliver the shipment, the carrier requests the PANfrom the buyer. The carrier then communicates with the third partypayment system and provides the PAN, received from the buyer, to thethird party payment system. The third party payment system will thenconfirm validity of the PAN to the carrier. Optionally, along with avalidation of the PAN, the third party payment system may provide thecarrier with additional verification information related to theshipment, such as, for example, a description of the goods beingdelivered, the name and address of the buyer and/or shipper, the actuallocation delivery is to take place, and the origination address of theshipment.

[0013] If the PAN is validated, the carrier will deliver the shipment ofgoods to the buyer and provide confirmation to the third party paymentsystem that delivery has occurred. The third party payment system willthen provide payment to the shipper and carrier(s), if applicable, onthe buyer's behalf.

[0014] Since the payment for the shipment is being made by the thirdparty payment system, and guaranteed by the third party payment system,the liability imposed on the carrier to ensure the payment is proper andwill be honored is removed. Thus, the third party payment system of thepresent invention provides a closed loop payment system comprising theshipper, buyer and the third party payment system.

[0015] The present invention also provides several advantages forshippers and buyers as well. For shippers, use of the third partypayment system can result in payments being received on behalf of buyersin a much shorter time frame, thereby reducing the overall costs of theshippers. With respect to the buyers, since the payment is provided bythe third party payment system directly to the shipper for C.O.D.shipments from the buyer's account, the buyer now has multiple paymentoptions for account reconciliation with the third party payment systemfor the C.O.D. shipments. For example, a buyer can now effectively payfor shipments received C.O.D. utilizing “Just-In-Time” payments, “Pay InAdvance” payments, and/or “Pay In Arrears” payments. The “Just-In-Time”payment option allows the buyer to pay the third party payment system atthe time of receipt of the goods. The “Pay In Arrears” payment optionprovides the buyer with a credit line, established by the third partypayment system, to pay for goods received C.O.D. The “Pay In Advance”payment option may provide buyers with interest on prepaid C.O.D.deliveries.

[0016] All of the payment solutions of the present invention allow thebuyer to view all of the details of the buyer's accounts with the thirdparty payment system on-line, including historical payment information,initiate on-line payments, and initiate and approve on-lineauthorizations. Buyers can make payments to the third party paymentsystem in a number of ways, including, for example, via check, ACHcredit or debit, credit or debit card, or wire.

DESCRIPTION OF THE DRAWINGS

[0017] The above and other objects and advantages of the presentinvention will be apparent upon consideration of the following detaileddescription, taken in conjunction with accompanying drawings, in whichlike reference characters refer to like parts throughout, and in which:

[0018]FIG. 1 illustrates portions of a conventional basic C.O.D.transaction process;

[0019]FIG. 2 illustrates portions of a C.O.D. transaction process inaccordance with the present invention; and

[0020]FIG. 3 illustrates in block diagram form an exemplary account forpayment on behalf of a buyer maintained by the third party paymentsystem according to the present invention.

DETAILED DESCRIPTION OF THE PRESENT INVENTION

[0021] In describing the present invention, reference is made to thedrawings, wherein there is seen in FIG. 2 an example of a C.O.D.transaction process between a consignor/seller/shipper 12 (hereinafterreferred to as shipper 12) and a consignee/buyer 14 (hereinafterreferred to as buyer 14) according to the present invention. While theexample illustrated in FIG. 2 illustrates an international shipment, itshould be understood that C.O.D. shipments may be both international ornational. In addition, it should be understood that while the presentinvention will be described in the context of a payment system forC.O.D. shipments, the present invention is not so limited and thepayment system of the present invention can be utilized in any type ofsituation in which payments are made from one party to another.

[0022] In step (100), the buyer 14 establishes an account with a thirdparty payment system 26 to provide services related to receipt by thebuyer 14 of C.O.D. shipments. Specifically, the third party paymentsystem 26 is authorized by the buyer 14 to make payments to a shipper 12(and, if applicable, a freight forwarder 18) on behalf of the buyer 14upon receipt of goods by the buyer 14 shipped by the seller 12 C.O.D.This account for buyer 14 can be established in a number of differentways as illustrated in FIG. 3. FIG. 3 illustrates in block diagram forman example of an account that can be established within third partypayment system for a buyer 14. Referring to FIG. 3, third party paymentsystem 26 can establish an interest bearing deposit account 30 and/or anon-interest bearing deposit account 40 for buyer 14 from which fundsmay be used to pay the charges associated with receipt by the buyer 14of goods shipped C.O.D. Interest bearing deposit account 30 allows thebuyer 14 to accumulate interest on any funds deposited in interestbearing deposit account 30. Funds for the interest bearing depositaccount 30 or non-interest bearing deposit account 40 for buyer 14 canbe provided by transferring funds, in any convenient manner, such as,for example, by wire transfer, check, ACH credit, etc., from the buyer'sbank account 38 to a bank account 34 of third party payment system 26.These funds are then transferred to the interest bearing deposit account30 or non-interest bearing deposit account 40. Alternatively to, or inaddition to, interest bearing deposit account 30 and/or non-interestbearing deposit account 40, third party payment system 26 could alsoestablish a credit line 32 for buyer 14 if desired. Payments made forshipments received C.O.D. by the buyer 14 are billed to the buyer 14 bythe accounts receivable department 36 of third party payment system 26,which then receives payment from the buyer 14, typically from thebuyer's bank account 38. Additionally, the interest bearing depositaccount 30, non-interest bearing deposit account 40 and/or credit line32 could be maintained by buyer 14 utilizing a dial-up system 42. Thus,the present invention provides buyer 14 with multiple payment optionsfor reconciling payments made by the third party payment system 26 onbehalf of the buyer 14 including “Just-In-Time” payments, “Pay InAdvance” payments, and/or “Pay In Arrears” payments. The “Just-In-Time”payment option allows the buyer 14 to pay the third party payment system26 upon actual receipt of goods by the buyer 14, such as, for example,by an ACH debit. The “Pay In Arrears” payment option provides the buyer14 with a credit line 32. The “Pay In Advance” payment option mayprovide buyer 14 with interest on funds previously deposited. All of thepayment solutions of the present invention allow the buyer 14 to viewall of their account detail on-line via a remote computer coupled to anetwork, such as, for example, the Internet. Account details include,for example, historical payment information, initiation of on-linepayments, and initiation and approval of authorizations on-line.

[0023] Referring again to FIG. 2, the buyer 14 places an order for goodswith the shipper 12 in step (102), and in step (104) the terms of thesale are agreed to by the buyer 14. Under the C.O.D. payment option, thebuyer 14 agrees to make payment simultaneously with the receipt of theshipment. The terms of the sale can indicate that payment is to be madeutilizing the third party payment system 26, as requested by either thebuyer 14 or the seller 12. Thus, if the seller 12 requests that paymentbe made via the third party payment system 26 and buyer 14 does notcurrently have an account with the third party payment system 26, buyer14 will be required to establish an account or provide funding to thirdparty payment system 26 for such payment.

[0024] In step 106 the buyer 14 makes a request for payment to the thirdparty payment system 26 for the charges associated with the terms ofsale agreed to in step (104). The request can be made using any suitablecommunication technique, such as, for example, via telephone, cellulartelephone, facsimile, or via a network, such as the Internet. Therequest may include information related to the purchase of the goods,such as, for example, a manifest of the specific items withdescriptions, the name and address of the seller, a range of datesduring which the shipment of goods will be delivered, the estimated costof the shipment (which may or may not include transportation expenses),including a “not to exceed” cost authorized by the buyer 14, and theaddress at which the shipment is to be delivered. Alternatively, therequest may be as simple as an order number generated by the buyer 14,shipper 12 or third party payment system 26. The buyer 14 authorizes thethird party payment system 26 to provide the shipper 12 with payment forthe goods on behalf of the buyer 14 upon receipt of the goods by thebuyer 14. Additionally, if the buyer 14 is responsible for paying anytransportation charges and the transportation charges will be billedseparately from the purchase price, the buyer 14 can authorize the thirdparty payment system 26 to make payments to the carrier(s) or freightforwarder 18.

[0025] In step (108), the information related to the purchase of thegoods by the buyer 14 is processed by the third party payment system 26,and a Payment Authorization Number (PAN) is generated by the third partypayment system 26 and communicated to the buyer 14. Such communicationcan be performed, for example, via any suitable communication technique,such as, for example, via telephone, cellular telephone, facsimile, orvia a network, such as the Internet. The PAN can be, for example, arandomly or cryptographically generated alphanumeric string or the likethat may be linked to the information that identifies the shipment ofthe goods. If a delivery will consist of multiple shipments, third partypayment system 26 may issue multiple PANs, one for each shipment in thedelivery. Alternatively, if a delivery will consist of multipleshipments, third party payment system 26 can issue a single PAN to coverall of the shipments within the delivery.

[0026] According to another embodiment of the present invention, insteadof generating a PAN, the information related to the shipment is simplystored by third party payment system 26, such as, for example, in adatabase (not shown), and associated with the buyer 14 for futureaccessing as will be described below.

[0027] Once a freight forwarder 18 has been determined, then in step(110) the shipper 12 contacts the freight forwarder 18 to arrange forthe shipment of the goods to the buyer 14. In step (112) the freightforwarder 18 coordinates the shipment with various participants,typically one or more carriers. The participants include, for example,an origination inland carrier 20, a long haul carrier 22, such as, forexample, an air cargo carrier for international shipments, and adestination inland carrier 16. Thus, the freight forwarder 18 willschedule with the origination inland carrier 20 the physical pick-up ofthe shipment and associated documentation (bill of lading, commercialinvoice, etc.) from the shipper 12, delivery to long haul carrier 22,and subsequent delivery to the destination inland carrier 16. Of course,the shipment could also be palletized for consolidation with othershipments before being delivered to the origination inland carrier 20 orlong haul carrier 22. In step (114), which of course may be concurrentwith step (112), the shipment moves through the transportation chainsystem.

[0028] Upon arrival of the shipment and customs clearance in thedestination country (for international shipments), the shipment is madeavailable for pick-up by the destination inland carrier 16 for deliveryto the buyer 14. Of course, if the shipment was palletized, it mustfirst be broken down into the individual shipments for final delivery.In step (116), the destination inland carrier 16 physically brings theshipment to the buyer 14, along with the shipper's 12 C.O.D. purchaseinvoice, and, since transportation expenses are being paid by the buyer14 and are being billed separately from the purchase price in thisexample, the C.O.D. transportation invoice(s). Also in step (116), thebuyer 14 provides the PAN generated by the third party payment system 26to the destination inland carrier 16.

[0029] In step (118), the destination inland carrier 16 communicateswith the third party payment system 26 to request validation of the PANreceived from the buyer 14. Such communication can be performed, forexample, via telephone, cellular telephone or a network, such as, forexample, the Internet. Preferably, the communication can be performed bythe destination inland carrier 16 utilizing a field operable device thatdoes not require a physical connection to a stationary power source ornetwork. The third party payment system 26, upon receipt of the PAN fromthe destination inland carrier, will then determine if the PAN is valid,i.e., a previously issued PAN, and if it is, confirm validity of the PANto the destination inland carrier 16 in step (120). Optionally, alongwith a validation of the PAN, the third party payment system 26 mayprovide the destination inland carrier 16 with additional verificationinformation related to the shipment, such as, for example, a descriptionof the goods being delivered, the name and address of the buyer and/orshipper, the actual location delivery is to take place, and theorigination address of the shipment.

[0030] Alternatively, if a PAN is not generated by the third partypayment system 26, the destination inland carrier 16 can communicatewith the third party payment system 26 and provide certain informationspecific to the shipment, such as, for example, the name and address ofthe buyer 14, one or more of a manifest of the specific items withdescriptions, the name and address of the shipper 12, the date ofdelivery, the cost of the shipment, and the address at which theshipment is being delivered. Third party payment system 26 can thencompare the information specific to the shipment as provided by thedestination inland carrier 16 with all stored information relating toexpected shipments associated with the buyer 14. The third party paymentsystem 26 will determine if the shipment for delivery by the destinationinland carrier 16 meets the criteria of any of the shipments for whichpayment has been previously authorized by buyer 14. The criteriaincludes, for example, a manifest of the specific items withdescriptions, the name and address of the seller, a range of datesduring which the shipment of goods will be delivered, the estimated costof the shipment, including a “not to exceed” cost authorized by thebuyer 14, and the address at which the shipment is to be delivered. Ifthird party payment system 26 determines the shipment for delivery bythe destination inland carrier 16 meets the criteria for a shipment forwhich payment has been previously authorized by buyer 14, then thirdparty payment system 26 will provide authorization to destination inlandcarrier 16 to deliver the shipment to the buyer in step (120).

[0031] If authorization is not provided to the destination inlandcarrier 16 to deliver the shipment to buyer 14 because it does not meetone or more of the criteria for an authorized shipment, then accordingto the present invention buyer 14 can revise the criteria, such as, forexample, the “not to exceed price” or otherwise fix the problem thatcaused rejection of authorization of the shipment.

[0032] Upon receipt of the validation or authorization in step (120),the destination inland carrier 16 will then physically deliver theshipment to the buyer 14 in step (122). The destination inland carrier16 can then provide confirmation to the third party payment system 26 instep (124) that the shipment has been delivered to the buyer 14. Itshould be noted that such confirmation need not be providedsimultaneously with delivery of the shipment. For example, confirmationsof delivery could be performed at predetermined time intervals, such as,for example, once or twice a day.

[0033] Upon receipt of confirmation of delivery of the shipment to thebuyer 14, the third party payment system 26 can provide payment for theshipment. For example, in step (126), the third party payment system 26can arrange for payment to be made to the freight forwarder 18. Inaddition, in step (128), which may be concurrent with or before step(126), third party payment system 26 can arrange for payment to theshipper 12. Of course, if the transportation expenses were included inthe purchase price, then third party payment system 26 will not provideany payment to the freight forwarder 18 and instead provide only asingle payment to the shipper 12 for distribution as applicable.Preferably, such payments to the freight forwarder 18 and shipper 12 aremade electronically. Typically, the payment is required to be receivedby the freight forwarder 18 and shipper 12 within a predetermined numberof days, such as, for example, thirty days from delivery. Third partypayment system 26 could arrange with one or both of the freightforwarder 18 and shipper 12 to make the full payment on the date it isdue, or alternatively to make a discounted payment earlier than the duedate. In this manner, the shipper 12 and/or freight forwarder 18 willnot receive the full amount, as the difference will be retained by thethird party payment system 26, but will receive payment much sooner(possibly even on the day of delivery), thereby reducing their overallcosts.

[0034] It should be noted, of course, that the freight forwarder 18,origination inland carrier 20, long haul carrier 22 and destinationinland carrier 16 may not be separate entities, but instead all of themor any combination could be the same entity. Additionally, it should benoted that while the example illustrated in FIG. 2 utilizes a long haulcarrier 22, shipments can also be made utilizing only a single inlandcarrier. In many situations, especially for domestic shipments, theorigination inland carrier 20, freight forwarder 18 and destinationinland carrier 16 will be the same entity. Furthermore, it should benoted that the third party payment system 26 and the freight forwarder18 may also be the same entity.

[0035] Thus, the present invention provides a trusted closed looppayment system and method that reduces the liability imposed uponcarriers for delivery of C.O.D. shipments. A third party payment systemis authorized by the buyer to make payments to a shipper (and, ifapplicable, a freight forwarder) on behalf of the buyer upon receipt ofgoods by the buyer. Since the payment for the shipment is being made bythe third party payment system, and guaranteed by the third partypayment system, the liability imposed on the carrier to ensure thepayment is proper and will be honored is removed. In addition, thepresent invention provides several advantages for shippers and buyers aswell, including receipt of payment by a shipper in a much shorter timeframe, and multiple payment options for buyers for accountreconciliation with the third party payment system for the C.O.D.shipments.

[0036] Those skilled in the art will also recognize that variousmodifications can be made without departing from the spirit of thepresent invention. For example, the PAN generated by the third partypayment system 26 (step (108) of FIG. 2) could be given to both thebuyer 14 and the destination inland carrier 16. When the destinationinland carrier 16 physically brings the shipment to the buyer 14 (step(116) of FIG. 2), the buyer 14 must provide the destination inlandcarrier 16 with the matching PAN. If the buyer 14 provides thedestination inland carrier with the matching PAN, the destination inlandcarrier 16 will then deliver the shipment to the buyer 14 and inform thethird party payment system of receipt of the matching authorizationnumber. Based upon the receipt from the destination inland carrier 16that the matching PAN was provided by the buyer 14, the third partypayment system 26 will provide for payment of the shipment to theshipper 12 and/or freight forwarder 18. Utilizing this scenario, thedestination inland carrier 16 does not need to request validation of thePAN from the third party payment system 26 (step (118) of FIG. 2).

[0037] As another example, the above scenario could be expanded toprovide additional security. For example, the third party payment system26 could provide each of the buyer 14 and the destination inland carrier16 with a complimentary cryptographic key instead of the PAN. The thirdparty payment system 26 will also provide an encrypted authorizationmessage to either one or both of the buyer 14 and destination inlandcarrier 16 via any suitable communication technique as described above.The message could be, for example, as simple as “Authorization Approved”or “Delivery Authorized.” The encrypted message requires both keys todecrypt. When the destination inland carrier 16 physically brings theshipment to the buyer 14 (step (116) of FIG. 2), the buyer 14 providesthe destination inland carrier 16 with its complimentary key, and thedestination inland carrier 16 will attempt to decrypt the message usingthe key provided by the buyer 14 and the complimentary key received fromthe third party payment system 26. This could be done, for example, bythe destination inland carrier 16 entering the keys and encryptedmessage into a field operable processing device that would utilize thekeys to decrypt the message. If the keys are the complimentary keysissued by the third party payment system 26, the message will beproperly decrypted and provided to the destination inland carrier 16.Thus, upon receipt of the message, such as, for example, “AuthorizationApproved” or “Delivery Authorized,” the destination inland carrier 16will then deliver the shipment to the buyer 14 and confirm decryption ofthe encrypted authorization message and/or delivery of the shipment tothe third party payment system 26. Based upon the confirmation ofdecryption and/or delivery from the destination inland carrier 16, thethird party payment system 26 will provide for payment of the shipmentto the shipper 12 and/or freight forwarder 18.

[0038] Alternatively, instead of or in addition to encrypting themessage, the message could optionally be signed by the third partypayment system 26, utilizing a signature key, and provided to either thebuyer 14 or destination inland carrier 16. The party not receiving thesigned message would be provided with the key that can be utilized toverify the signature. When the destination inland carrier 16 physicallybrings the shipment to the buyer 14 (step (116) of FIG. 2), the buyer 14provides the destination inland carrier 16 with either the key or signedmessage, as applicable, and the destination inland carrier 16 willattempt to verify the signature of the message. This could be done, forexample, utilizing a field operable processing device. If the signatureis verified, the destination inland carrier 16 will then deliver theshipment to the buyer 14.

[0039] While preferred embodiments of the invention have been describedand illustrated above, it should be understood that these are exemplaryof the invention and are not to be considered as limiting. Additions,deletions, substitutions, and other modifications can be made withoutdeparting from the spirit or scope of the present invention.Accordingly, the invention is not to be considered as limited by theforegoing description but is defined by the appended claims and theirequivalents.

What is claimed is:
 1. A method for providing funds to pay for atransaction between a buyer and a shipper comprising: receiving arequest for payment for the transaction from the buyer, the requestincluding information related to the transaction; generating anauthorization number associated with the information related to thetransaction; providing the authorization number to the buyer; receivinga request for validation of the authorization number upon processing ofthe transaction; validating the authorization number; if theauthorization number is validated, providing confirmation of validity ofthe authorization number; and providing funds to pay for the transactionto the shipper.
 2. The method according to claim 1, wherein before arequest for payment is received, the method further comprises:establishing at least one associated payment account for the buyer toprovide the funds for the transaction upon validation of theauthorization number.
 3. The method according to claim 2, wherein the atleast one associated payment account includes an interest bearingdeposit account.
 4. The method according to claim 2, wherein the atleast one associated payment account includes a non-interest bearingdeposit account.
 5. The method according to claim 2, wherein the atleast one associated payment account includes a credit account.
 6. Themethod according to claim 1, wherein the information related to thetransaction includes at least one of a manifest of items included in thetransaction, an identification of the shipper, a range of dates duringwhich the transaction will occur, an estimated cost of the transaction,and a not-to-exceed cost of the transaction.
 7. The method according toclaim 1, wherein validating the authorization number further comprises:determining if the authorization number was previously generated.
 8. Themethod according to claim 1, wherein providing confirmation of thevalidity of the authorization number further comprises: providingverification information related to the transaction.
 9. The methodaccording to claim 8, wherein the verification information includes atleast one of a manifest of items included in the transaction, anidentification of the shipper, and an identification of the buyer. 10.The method according to claim 1, wherein providing funds to pay for thetransaction further comprises: providing funds to a carrier serviceassociated with processing the transaction.
 11. The method according toclaim 1, wherein the transaction includes a collect on delivery shipmentdelivered by a carrier service, and receiving a request for validationof the authorization number further comprises: receiving a request forvalidation of the authorization number from the carrier service makingthe collect on delivery shipment for the shipper.
 12. The methodaccording to claim 1, wherein generating an authorization number furthercomprises: generating a random number linked to the information relatedto the transaction.
 13. The method according to claim 1, whereingenerating an authorization number further comprises: generating acryptographic number linked to the information related to thetransaction.
 14. A method for providing funds to pay for a transactionbetween a buyer and a seller comprising: receiving a request for paymentfor the transaction from the buyer, the request including informationrelated to the transaction; storing the information related to thetransaction; receiving a request for authorization of the transactionupon processing of the transaction, the request for authorizationincluding information specific to the transaction; comparing theinformation specific to the transaction with the stored informationrelated to the transaction; if the information specific to thetransaction favorably compares with the stored information related tothe transaction, providing authorization to complete processing of thetransaction; and providing funds to pay for the transaction to theseller.
 15. The method according to claim 14, wherein the informationrelated to the transaction includes at least one of a manifest of itemsincluded in the transaction, an identification of the seller, a range ofdates during which the transaction will occur, an estimated cost of thetransaction, and a not-to-exceed cost of the transaction.
 16. The methodaccording to claim 15, wherein the information specific to thetransaction includes at least one of a manifest of items included in thetransaction, an identification of the seller, a date of processing ofthe transaction, a cost of the transaction, and a location at which thetransaction is being processed.
 17. The method according to claim 14,wherein before a request for payment is received, the method furthercomprises: establishing at least one associated payment account for thebuyer to provide the funds for the transaction.
 18. The method accordingto claim 17, wherein the at least one associated payment accountincludes an interest bearing deposit account.
 19. The method accordingto claim 17, wherein the at least one associated payment accountincludes a non-interest bearing deposit account.
 20. The methodaccording to claim 17, wherein the at least one associated paymentaccount includes a credit account.
 21. The method according to claim 14,wherein the transaction includes a collect on delivery shipmentdelivered by a carrier service, and receiving a request forauthorization of the transaction further comprises: receiving a requestfor authorization of the transaction from the carrier service making thecollect on delivery shipment.
 22. A method for providing funds to payfor goods purchased by a buyer from a seller, the goods being deliveredto the buyer by a carrier, the method comprising: receiving a requestfor payment for the goods from the buyer, the request includinginformation related to the goods being purchased; generating anauthorization number associated with the information related to thegoods being purchased; providing the authorization number to thecarrier, receiving confirmation from the carrier of receipt of amatching authorization number from the buyer upon delivery of the goodsby the carrier to the buyer; and providing funds to pay for the goods tothe seller based on the confirmation of receipt of the matchingauthorization number from the carrier.
 23. The method according to claim22, wherein before a request for payment is received, the method furthercomprises: establishing at least one associated payment account for thebuyer to provide the funds to pay for the goods.
 24. The methodaccording to claim 23, wherein the at least one associated paymentaccount includes an interest bearing deposit account.
 25. The methodaccording to claim 23, wherein the at least one associated paymentaccount includes a non-interest bearing deposit account.
 26. The methodaccording to claim 23, wherein the at least one associated paymentaccount includes a credit account.
 27. The method according to claim 23,wherein generating an authorization number further comprises: generatinga random number linked to the information related to the goods beingpurchased.
 28. The method according to claim 23, wherein generating anauthorization number further comprises: generating a cryptographicnumber linked to the information related to the goods being purchased.29. A method for providing funds to pay for goods purchased by a buyerfrom a shipper, the goods being delivered to the buyer by a carrier, themethod comprising: receiving a request for payment for the goods fromthe buyer; generating an encrypted authorization message associated withthe transaction, the encrypted authorization message requiring a firstkey and a second key to decrypt; providing the encrypted authorizationmessage to at least one of the buyer and the carrier; providing thefirst key to the buyer; providing the second key to the carrier;receiving confirmation from the carrier of delivery of the goods by thecarrier to the buyer; and providing funds to pay for the transaction tothe shipper based on the confirmation from the carrier.
 30. The methodaccording to claim 29, wherein receiving confirmation from the carrierfurther comprises: receiving confirmation of decryption of the encryptedauthorization message, using the first and second keys, from thecarrier.
 31. The method according to claim 29, wherein the encryptedauthorization message is provided with a verification signatureutilizing a third key, and wherein the method further comprises:providing the third key to at least one of the buyer and carrier forverifying the verification signature.
 32. A method for providing fundsto pay for goods purchased by a buyer from a seller, the goods beingdelivered to the buyer by a carrier, comprising: receiving a request forpayment for the goods from the buyer, the request including informationrelated to the goods being purchased, the payment to be made on behalfof the buyer to the seller; generating an authorization numberassociated with the information related to the goods being purchased;providing the authorization number to the buyer; receiving a request forvalidation of the authorization number from the carrier upon delivery ofthe goods by the carrier to the buyer; validating the authorizationnumber; if the authorization number is validated, providing confirmationof the validation of the authorization number to the carrier; andproviding funds to pay for the transaction to the seller.
 33. The methodaccording to claim 32, wherein before a request for payment is received,the method further comprises: establishing at least one associatedpayment account for the buyer to provide the funds for the transactionupon validation of the authorization number.
 34. The method according toclaim 33, wherein the at least one associated payment account includesan interest bearing deposit account.
 35. The method according to claim33, wherein the at least one associated payment account includes anon-interest bearing deposit account.
 36. The method according to claim33, wherein the at least one associated payment account includes acredit account.
 37. The method according to claim 32, wherein theinformation related to the goods being purchased includes at least oneof a manifest of the goods being purchased, an identification of theseller, a range of dates during which the goods will be delivered, anestimated cost of the goods being purchased, and a not-to-exceed cost ofthe goods being purchased.
 38. The method according to claim 32, whereinvalidating the authorization number further comprises: determining ifthe authorization number was previously generated.
 39. The methodaccording to claim 32, wherein providing confirmation of the validationof the authorization number to the carrier further comprises: providingauthorization for the carrier to deliver the goods to the buyer.
 40. Themethod according to claim 32, wherein providing confirmation of thevalidation of the authorization number to the carrier further comprises:providing verification information related to the goods being purchased.41. The method according to claim 40, wherein the verificationinformation includes at least one of a manifest of the goods beingpurchased, an identification of the seller, and an identification of thebuyer.
 42. The method according to claim 32, wherein providing funds topay for the goods being purchased further comprises: providing funds tothe carrier service delivering the goods being purchased.
 43. A methodfor a carrier to deliver goods to a buyer from a shipper comprising:receiving an authorization number from the buyer upon delivery of thegoods to the buyer, the authorization number being previously generatedby a payment system and being associated with the goods being delivered;communicating with the payment system to request validation of theauthorization number received from the buyer; receiving confirmation ofthe authorization number from the payment system, the confirmationindicating that payment for the goods will be made by the payment systemto the shipper on behalf of the buyer; and delivering the goods to thebuyer.
 44. The method according to claim 43, wherein the authorizationnumber is a randomly generated number.
 45. The method according to claim43, wherein the authorization number is an encrypted number.
 46. Themethod according to claim 43, wherein receiving confirmation of theauthorization number further comprises: receiving verificationinformation related to the goods.
 47. A method for a carrier to delivergoods to a buyer from a shipper comprising: communicating with a paymentsystem to request authorization for delivery of the goods to the buyer,the authorization request including information specific to the goodsbeing delivered; receiving authorization for delivery of the goods tothe buyer from the payment system, the authorization signifying thatpayment for the goods will be made by the payment system to the shipperon behalf of the buyer for the goods; and delivering the goods to thebuyer.
 48. The method according to claim 47, wherein the informationspecific to the goods being delivered includes at least one of anidentification of the buyer, a manifest of the goods being delivered, anidentification of the shipper, a delivery date, and a not to exceed costof the goods being delivered.
 49. A method for a carrier to delivergoods to a buyer from a shipper comprising: receiving a firstauthorization number, the first authorization number being previouslygenerated by a payment system and being associated with the goods beingdelivered; receiving a second authorization number from the buyer upondelivery of the goods; comparing the first authorization number and thesecond authorization number; if the first authorization number and thesecond authorization number are identical, delivering the goods to thebuyer; and providing confirmation of the delivery of the goods to thepayment system, wherein payment for the goods will be made by thepayment system to the shipper on behalf of the buyer.
 50. The methodaccording to claim 49, wherein the first authorization number isreceived from the payment system.
 51. A method for a carrier to delivergoods to a buyer from a shipper comprising: receiving an encryptedauthorization message, the encrypted authorization message beingpreviously generated by a payment system and being associated with thegoods being delivered; receiving a first key; receiving a second keyfrom the buyer; decrypting the encrypted confirmation message using thefirst key and the second key; and upon successful decryption of theencrypted authorization message, delivering the goods to the buyer andproviding confirmation of the delivery of the goods to the paymentsystem, wherein payment for the goods will be made by the payment systemto the shipper on behalf of the buyer.
 52. The method according to claim51, wherein the encrypted authorization message is received from thebuyer.
 53. The method according to claim 51, wherein the first key isreceived from the payment system.
 54. The method according to claim 51,wherein the encrypted authorization message is provided with averification signature, the method further comprising: verifying thesignature of the encrypted authorization message.
 55. A system forproviding funds to pay for a transaction between a buyer and a shippercomprising: means for receiving a request for payment for thetransaction from the buyer, the request including information related tothe transaction; means for generating an authorization number associatedwith the information related to the transaction; means for providing theauthorization number to the buyer; means for receiving a request forvalidation of the authorization number upon processing of thetransaction; means for validating the authorization number; means forproviding confirmation of validity of the authorization number; andmeans for providing funds to pay for the transaction to the shipper. 56.The system according to claim 55, further comprising: at least oneassociated payment account for the buyer to provide the funds for thetransaction upon validation of the authorization number.
 57. The systemaccording to claim 56, wherein the at least one associated paymentaccount includes an interest bearing deposit account.
 58. The systemaccording to claim 56, wherein the at least one associated paymentaccount includes a non-interest bearing deposit account.
 59. The systemaccording to claim 56, wherein the at least one associated paymentaccount includes a credit account.
 60. The system according to claim 55,wherein the information related to the transaction includes at least oneof a manifest of items included in the transaction, an identification ofthe shipper, a range of dates during which the transaction will occur,an estimated cost of the transaction, and a not-to-exceed cost of thetransaction.
 61. The system according to claim 55, wherein validatingthe authorization number includes determining if the authorizationnumber was previously generated.
 62. The system according to claim 55,wherein the confirmation of the validity of the authorization numberincludes verification information related to the transaction.
 63. Thesystem according to claim 62, wherein the verification informationincludes at least one of a manifest of items included in thetransaction, an identification of the shipper, and an identification ofthe buyer.
 64. The method according to claim 55, wherein providing fundsto pay for the transaction includes providing funds to a carrier serviceassociated with processing the transaction.
 65. The system according toclaim 55, wherein the authorization number is a random number linked tothe information related to the transaction.
 66. The system according toclaim 55, wherein the authorization number is a cryptographic numberlinked to the information related to the transaction.
 67. A system forproviding funds to pay for a transaction between a buyer and a sellercomprising: means for receiving a request for payment for thetransaction from the buyer, the request including information related tothe transaction; means for storing the information related to thetransaction; means for receiving a request for authorization of thetransaction upon processing of the transaction, the request forauthorization including information specific to the transaction; meansfor comparing the information specific to the transaction with thestored information related to the transaction; means for providingauthorization to complete processing of the transaction if theinformation specific to the transaction favorably compares with thestored information related to the transaction; and means for providingfunds to pay for the transaction to the seller.
 68. The system accordingto claim 67, wherein the information related to the transaction includesat least one of a manifest of items included in the transaction, anidentification of the seller, a range of dates during which thetransaction will occur, an estimated cost of the transaction, and anot-to-exceed cost of the transaction.
 69. The system according to claim68, wherein the information specific to the transaction includes atleast one of a manifest of items included in the transaction, anidentification of the seller, a date of processing of the transaction, acost of the transaction, and a location at which the transaction isbeing processed.
 70. The system according to claim 67, furthercomprising: at least one associated payment account for the buyer toprovide the funds for the transaction.
 71. The system according to claim70, wherein the at least one associated payment account includes aninterest bearing deposit account.
 72. The system according to claim 70,wherein the at least one associated payment account includes anon-interest bearing deposit account.
 73. The system according to claim70, wherein the at least one associated payment account includes acredit account.
 74. A system for providing funds to pay for goodspurchased by a buyer from a seller, the goods being delivered to thebuyer by a carrier, the system comprising: means for receiving a requestfor payment for the goods from the buyer, the request includinginformation related to the goods being purchased; means for generatingan authorization number associated with the information related to thegoods being purchased; means for providing the authorization number tothe carrier; means for receiving confirmation from the carrier ofreceipt of a matching authorization number from the buyer upon deliveryof the goods by the carrier to the buyer; and means for providing fundsto pay for the goods to the seller based on the confirmation of receiptof the matching authorization number from the carrier.
 75. The systemaccording to claim 74, further comprising: at least one associatedpayment account for the buyer to provide the funds to pay for the goods.76. A system for providing funds to pay for goods purchased by a buyerfrom a shipper, the goods being delivered to the buyer by a carrier, thesystem comprising: means for receiving a request for payment for thegoods from the buyer; means for generating an encrypted authorizationmessage associated with the goods, the encrypted authorization messagerequiring a first key and a second key to decrypt; means for providingthe encrypted authorization message to at least one of the buyer and thecarrier; means for providing the first key to the buyer; means forproviding the second key to the carrier; means for receivingconfirmation from the carrier of delivery of the goods by the carrier tothe buyer, the delivery of the goods being based upon successfuldecryption of the encrypted authorization message by the carrier usingthe first and second keys; and means for providing funds to pay for thetransaction to the shipper based on the confirmation from the carrier.77. A system for providing payment to a shipper on behalf of a buyer forgoods shipped to the buyer, the system comprising: a payment systemadapted to receive a request from the buyer for payment to the shipperfor goods to be delivered to the buyer, the request includinginformation related to the goods to be shipped to the buyer, the paymentsystem generating an authorization number associated with theinformation related to the goods and providing the authorization numberto the buyer; and a payment account maintained for the buyer, whereinthe payment system, upon receipt of a request for validation of theauthorization number, will validate the authorization number and providepayment to the shipper for the goods from the payment account maintainedfor the buyer.